Wolverine World Wide, Inc. ( WWW Quick Quote WWW - Free Report) is expected to report a decrease in its top line from the year-ago quarter’s reported figure when it releases first-quarter 2023 results on May 10, before the market open. The Zacks Consensus Estimate of $584.7 million for quarterly revenues suggests a fall of 4.9% from the prior-year quarter’s tally. The consensus estimate for the quarterly bottom line has been stable in the past 30 days at 5 cents per share. The figure indicates a sharp decline from earnings of 41 cents a share in the year-earlier quarter. We expect revenues of $599.8 million to reflect a year-over-year drop of 2.4% and the bottom line to plunge 87.7% to 5 cents per share for the first quarter. In the trailing four quarters, this Rockford, MI-based player delivered a negative earnings surprise of 3.7%, on average. Key Factors to Note
Wolverine has been witnessing higher adjusted selling, general and administrative expenses for a while now. Also, the macro challenges, including foreign currency headwinds and inflationary pressures are expected to have been deterrents. These factors are likely to have hurt the company’s performance in the quarter under review.
On its last earnings call, management had forecast a gross margin of about 40% for the first quarter and an operating margin of nearly 4%, consisting of $17 million of transitory inventory expenses from 2022 and $8 million of elevated holding and liquidation costs with respect to the inventory. For the first quarter, management had projected revenues of nearly $580 million. On the flip side, Wolverine’s commitment to product innovation and investment in digitization to directly reach customers appear encouraging. Management is also strengthening its direct-to-consumer capabilities. Speed-to-market initiatives, deployment of the digital product development tool and expansion of e-commerce platforms are contributing to its performance. Wolverine is focused on developing brands that suit consumer needs aptly on the back of advanced technologies and accurate market insights. Its international business is also performing well. What Our Zacks Model Says
Our proven model doesn’t conclusively predict an earnings beat for Wolverine this time around. The combination of a positive
Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Wolverine has an Earnings ESP of -34.78% and a Zacks Rank #4 (Sell), making surprise prediction difficult.
Some Stocks With a Favorable Combination
Here are three companies, which according to our model, have the right combination of elements to beat on earnings this reporting cycle:
Boyd Gaming ( BYD Quick Quote BYD - Free Report) currently has an Earnings ESP of +1.28% and a Zacks Rank of 2. . You can see . the complete list of today’s Zacks #1 Rank stocks here BYD is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $891.4 million, suggesting a 0.3% fall from the figure reported in the prior-year quarter. The consensus estimate for Boyd Gaming’s second-quarter earnings is pegged at $1.56 per share, suggesting 5.4% growth from $1.48 per share reported in the year-ago quarter. BYD has a trailing four-quarter earnings surprise of 13.7%, on average. Conagra Brands ( CAG Quick Quote CAG - Free Report) has an Earnings ESP of +0.12% and a Zacks Rank of 2, at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.1 billion, which suggests growth of 4.6% from the figure reported in the prior-year quarter. The consensus estimate for Conagra Brands’ quarterly earnings has moved down 4.7% in the past 30 days to 61 cents per share, indicating a decline of 6.2% from the year-ago quarter’s reported number. CAG has a trailing four-quarter earnings surprise of 13.2%, on average. lululemon athletica ( LULU Quick Quote LULU - Free Report) currently has an Earnings ESP of +1.28% and a Zacks Rank of 3. LULU is likely to register top-line improvement when it reports first-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $1.9 billion, calling for growth of 19.5% from the prior-year quarter’s reported figure. The consensus mark for the quarterly EPS of $1.93 suggests a 30.4% increase from the figure reported in the year-ago quarter. LULU has a trailing four-quarter earnings surprise of 6.8%, on average. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.